The Russian embassy in New Delhi last week asked India for help with obtaining certain food supplies blocked by international sanctions imposed after the invasion of Ukraine.
The Federation of Indian Export Organizations (FIEO) obliged by arranging a meeting between Indian food and pharmaceutical sellers and Russian buyers.
“Several large Russian companies have reached out to the Russian embassy in New Delhi to look for suppliers in India for a variety of products. We will hold a one-day sensitization program for importers from Russia and exporters from India. There are a lot of products that Russia is interested in, and a lot of enquiries are flowing in,” FIEO chief executive Ajay Sahai explained to Mint on Saturday.
Mint quoted an Indian government official who said the products sought by Russia – including marmalade, pasta, basmati rice, and tea – are not explicitly banned from sale to Russia. Instead, financial sanctions have made it difficult for Russia to pay for its purchases. New Delhi and Moscow are working out an “alternative payment system” involving only their respective national currencies, the rupee, and the ruble.
Another Indian trade association official, Praveen Khandelwal of the Confederation of All India Traders (CAIT), said Russia furnished his organization with “an elaborate list of items they require immediately,” including clothing and jewelry as well as food.
Khandelwal said the list was duly circulated to “traders across India,” and their response was “overwhelming,” thanks to the high prices offered by Russian buyers.
“This could mean replacing the EU’s, the UK’s and the U.S. market in Russia,” he said, anticipating the first shipments would be sent to Russia by June.
CNBC reported on Monday the Association of Indian Medical Devices (AIMED) had scheduled a meeting on April 22 with Business Russia, a large Russian private industry association. Russian buyers are also looking to meet with Indian pharmaceutical groups in the coming weeks.
As with the agricultural purchases, working out the details of a payment system that can bypass financial sanctions on Russia is expected to be a top agenda item for the meetings. AIMED forum coordinator Rajiv Nath estimated that India could increase its pharmaceutical exports to Russia tenfold if the financial details are worked out.
India has been studiously neutral on the invasion of Ukraine and has refused to scale back its business dealings with Russian interests amid worldwide sanctions, a posture noticed and applauded by Moscow on Tuesday.
“We are open to cooperation with all other countries who do not use illegal, illegitimate measures in violation of the UN charter. And India is among those. We cooperate bilaterally,” Russian Foreign Minister Sergey Lavrov said in an interview with India Today.
Lavrov saluted India as Russia’s “very, very old friend,” and pledged military assistance in exchange for India providing political and economic support to the pariah regime of Vladimir Putin.
“On defense, we can provide anything India wants, and technology transfer in the context of defense cooperation is absolutely unprecedented for any of India’s outside partners,” Lavrov boasted.
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